Banker Leaves 1% Tip On $133 Lunch Bill In Defiance of 'The 99%' [UPDATED]

Server Wages: The Basics
1.   The most common and accepted way to pay servers in the U.S. is based on the tip system. Servers earn most of their income from tips received and diners are expected to pay an additional amount of 15- 20 percent for service  based on the amount of a meal by leaving a tip.  Although the diner is free to leave any amount or nothing at all, it is a common practice and culturally enforced.   Most employers are allowed to pay servers a direct special sub minimum wage that is lower than the federal minimum wage.

In other countries and in Europe it is more common for servers to receive an hourly living wage and often they do not expect or receive tips. The federal subminimum cash wage for  food servers in the U.S. is $2.13 per hour. States with lower sub minimum wages than the federal ($2.13) include  Oklahoma ($2.00), Virginia, and New Jersey ( These states are allowed to take a higher tip credit if they meet certain conditions resulting in a lower cash wage or none at all).

2.   On July 24, 2009  the Federal minimum wage increased to $7.25
The federal subminimum wage for tipped workers including servers DID NOT increase.It is still $2.13.  In fact, the sub minimum wage has not been raised in 17 years. Only the tip credit  increased; meaning employers will be able to count an increased amount of tips towards a servers wage.  $2.13 + tips = $7.25

3. Why hasn’t the Federal subminimum wage for waiter and waitresses been raised in 17 years?
In 1996, Republican lawmakers sided with restaurant industry  lobbyist and froze the subminimum wage at $2.13.  If the subminimum wage returned to 50 percent, then waiters and waitresses would earn $3.63 per hour today.
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